NCEA Level 1 Business Studies (90837) 2015 — page 1 of 8
Assessment Schedule – 2015
Business Studies: Demonstrate an understanding of internal features of a small business (90837)
Assessment Criteria
Describing: States what the answer is to the question asked. Defines (states the meaning of), identifies (gives an account of the qualities or characteristics), outlines (states
what the answer is).
Explaining: States what the answer is to the question asked, then expands by giving the reason(s) why the “what” occurs, or links ideas to provide a coherent rationale.
Fully explaining: Develops the explanation with further expansion of how the situation / action could impact on potential business or stakeholder goals, or a particular
outcome. This will generally relate to effects, advantages, disadvantages, and / or consequences.
Note: Each question should be read as a whole before awarding a grade.
Evidence
Q1
(a)
Sample answers / Evidence
Effective relationships in an organisation is a situation
where both the employer and the employee have trust,
mutual respect, are honest, and are able to have open
communication with each other (Described).
Reasons why it is important to have effective
relationships, and their impact(s) on the business, may
include:
 There would be positive interactions between
employers and employees (Described). Shane and his
employees would be able to have honest discussions
regarding the working environment, with no fear of
these discussions leading to conflict (Explained). This
means that if Ngahuia has an idea regarding workplace
safety, she can be confident that her opinion will be
listened to and respected. Therefore, this would have a
positive impact on the business, as potential hazards
would be identified earlier and the risk of injury or death
would be reduced or eliminated. This would add to the
business’s reputation for having a safe working
environment (Fully explained).
 The work environment would be more enjoyable
Achievement with
Excellence
Achievement
Achievement with Merit
 Describes effective
employee / employer
relationships.
 Explains TWO impacts that
effective relationships will
have on Hīkoi Whenua.
 Fully explains TWO impacts
that effective relationships
will have on Hīkoi Whenua.
 Describes TWO impacts that
effective relationships will
have on Hīkoi Whenua.
 Explains TWO features of
Shane being a good
employer.
 Describes TWO features of
Shane being a good
employer.
 Describes TWO features of
Shane being a good
employer.
 Explains how EACH feature
may affect employee
attitudes towards the
business.
 Fully explains how EACH
feature may affect employee
attitudes towards the
business.
(Answers will typically
include relevant examples,
business knowledge, and / or
Māori business concepts.)
(Answers will typically
integrate relevant examples,
business knowledge, and / or
Māori business concepts into
explanations.)
 Describes how EACH
feature may affect employee
attitudes towards the
business.
(Answers will typically state
relevant examples, business
knowledge, and / or Māori
business concepts.)
NCEA Level 1 Business Studies (90837) 2015 — page 2 of 8
(Described). This is important because it would lead to
a positive working environment where creativity and
innovation are nurtured (Explained). For example, if
Ngahuia or Tipene had an idea regarding new tramping
routes or overnight stays, they would feel motivated in
researching and developing their ideas. Therefore this
would have a positive impact on the business, as it
could lead to the development of a unique selling point,
and thus an opportunity to gain higher returns (Fully
explained).
 The likelihood of work disruptions would be minimised
(Described). This is important because workplace
disruptions due to employer / employee conflict can
have a negative effect on the business (Explained).
This means that the tramping services of the business
may be disrupted, due to either Tipene or Ngahuia not
turning up for work or arriving for work late, until the
conflict has been resolved. Therefore this would have a
negative impact on Hīkoi Whenua, as it could lead to
customers going to competitors, due to uncertainty
around whether the business is open or closed (Fully
explained).
 Recruitment and selection costs are kept to a minimum
(Described). This is because Ngahuia and Tipene are
fulfilled within their working environment. This fulfilment
makes it more likely that they will be loyal to Hīkoi
Whenua and will not seek employment elsewhere
(Explained). This will reduce or eliminate staff
recruitment and training costs, which in turn will have a
positive impact on profits (Fully explained).
(b)
Examples may include:
 Shane pays employees fairly and on time (Described).
This shows that Shane is an honest employer, and the
employees know they can count on being paid fairly
and promptly (Explained). Therefore, the employees are
likely to feel more secure in their jobs and positive
towards the business. This could lead to higher
NCEA Level 1 Business Studies (90837) 2015 — page 3 of 8
productivity (Fully explained).
 Shane provides equipment and training, and a safe
working environment (Described). Shane provides for
the health and safety of his employees by ensuring that
the workplace is safe and that staff are trained correctly,
thus reducing the risk of his employees getting injured
while at work (Explained). This means that the
employees will have more confidence in each other and
the business procedures in times of crisis, e.g. a
tramping accident. Ngahuia and Tipene will be more
confident / secure in their positions, and are more likely
to be loyal employees (Fully explained).
 Shane provides each employee with an employment
contract that outlines the responsibilities of the job, rate
per hour, leave entitlements, and hours of work
(Described). This means that there would be no
confusion regarding the conditions of their employment,
because they have a document that outlines their legal
rights and responsibilities (Explained). Therefore,
employees would have a level of certainty within their
positions at Hīkoi Whenua which would lead to
increased staff confidence, high staff morale, and
strong motivation (Fully explained).
 Shane is respectful to each employee, and in return
they are respectful with him (Described). This means
that staff feel more valued and secure in their job
(Explained). This could lead to higher productivity (Fully
explained).
N1
Very little
Achievement
evidence.
N2
Some Achievement
evidence.
N0/ = No response; no relevant evidence.
A3
Most Achievement
evidence.
A4
Nearly all
Achievement
evidence.
M5
Some Merit
evidence.
M6
Most Merit evidence.
E7
Excellence
evidence. One part
may be weaker.
E8
All points covered.
NCEA Level 1 Business Studies (90837) 2015 — page 4 of 8
Q2
Sample answers / Evidence
(a)
Characteristics of an entrepreneur include determination,
vision, passion, initiative, resilience, a willingness to take
calculated risks, creativity, leadership, and a decisionmaking aptitude (Identified).
These must be qualities that occur naturally.
 Determination is an important characteristic of an
entrepreneur because this means that you stick with
something no matter how difficult, because the benefits
are worth waiting for (Explained). An entrepreneur is
likely to encounter set-backs when running a business,
and needs determination to continue. Therefore, the
business has a higher possibility of staying in operation
past the first few difficult years (Fully explained).
 Vision is an important characteristic of an entrepreneur
because you are able to see opportunities and solutions
where other people may not (Explained). This will
enable the business to stay one step ahead of its
competitors. Therefore, the business is able to take
advantage of shifts in the market earlier than its
competitors (Fully explained).
 Passion is an important characteristic of an
entrepreneur because you would have the drive to
follow your dreams and beliefs, and work hard to
achieve these (Explained). Passion will enable the
entrepreneur to persevere in difficult times, helping the
business to survive (Fully explained).
 Having initiative is an important characteristic of an
entrepreneur because you will get a project started
before others (Explained). This will enable the business
to stay ahead of its competitors, thus helping the
business to take advantage of this new demand for
products / services (Fully explained).
Achievement
 Identifies TWO
characteristics of an
entrepreneur.
Achievement with Merit
Achievement with
Excellence
 Explains why EACH
characteristic is important.
 Fully explains why EACH
characteristic is important.
 Describes why EACH
characteristic is important.
 Explains TWO
entrepreneurial skills that
Shane demonstrates.
 Identifies TWO
entrepreneurial skills that
Shane demonstrates.
 Identifies TWO
entrepreneurial skills that
Shane demonstrates.
 Explains how EACH skill
contributes to business
success.
 Fully explains how EACH
skill contributes to business
success.
(Answers will typically include
relevant examples, business
knowledge, and / or Māori
business concepts.)
(Answers will typically
integrate relevant examples,
business knowledge, and / or
Māori business concepts into
explanations.)
 Describes how EACH skill
contributes to business
success.
(Answers will typically state
relevant examples, business
knowledge, and / or Māori
business concepts.)
NCEA Level 1 Business Studies (90837) 2015 — page 5 of 8
(b)
The role of the entrepreneur (Shane) is to see
opportunities and then to take the risk to exploit those
opportunities.
These are skills that Shane has learnt or has trained for:
 One skill that Shane displays is the ability to plan. This
is so he can meet the goals of the business (Explained).
This will enable Hīkoi Whenua to be sustainable,
because if the goal of the business is, for example,
survival, then having planning skills will enable the
business to adapt, and to meet future needs and exploit
future opportunities (Fully explained).
 One skill that Shane displays is marketing. Good
marketing skills means that the “tramps” are likely to be
sold (Explained). This will enable Hīkoi Whenua to be
sustainable, because sales would be maximised.
Therefore profits will be sustainable, and the business
will continue operating into the future (Fully explained).
 One skill that Shane displays is management. This
means that he has gathered the right resources to
operate the business, and that these resources are
being used efficiently and effectively (Explained). This
will enable Hīkoi Whenua to be sustainable and there
will be little waste, thus reducing costs. This will
contribute to increased business profits and sustained
operation into the future (Fully explained).
N1
Very little
Achievement
evidence.
N2
Some Achievement
evidence.
N0/ = No response; no relevant evidence.
A3
Most Achievement
evidence.
A4
Nearly all
Achievement
evidence.
M5
Some Merit
evidence.
M6
Most Merit evidence.
E7
Excellence
evidence. One part
may be weaker.
E8
All points covered.
NCEA Level 1 Business Studies (90837) 2015 — page 6 of 8
Q3
(a)
Sample answers / Evidence
Achievement
Achievement with Merit
Achievement with
Excellence
Rangatiratanga is the authority or ownership right over
the land which is given by the iwi to Shane. (This comes
with the responsibility of guardianship.)
 Describes the principle of
rangatiratanga in the context
of Hīkoi Whenua and Shane.
 Explains the principle of
rangatiratanga in the context
of Hīkoi Whenua and Shane.
Examples of the principle of rangatiratanga in the context
of Hīkoi Whenua and Shane may include:
 Identifies TWO reasons why
Shane’s rangatiratanga
status may help to make
Hīkoi Whenua a successful
business.
 Explains TWO reasons why
Shane’s rangatiratanga
status may help to make
Hīkoi Whenua a successful
business.
 Identifies a measure of
success.
 Explains how EACH of the
TWO factors may contribute
to the success of the
business.
 Fully explains how EACH of
the TWO factors may
contribute to the success of
the business.
(Answers will typically include
relevant examples, business
knowledge, and / or Māori
business concepts.)
(Answers will typically
integrate relevant examples,
business knowledge, and / or
Māori business concepts into
explanations.)
 Shane’s business, Hīkoi Whenua, will be able to utilise /
control / operate the land without disturbance / charges /
restrictions from the iwi, as the iwi believe that the land
will be managed / cared for / promoted by Shane. This
means that the land will be looked after and protected
(Explained).
 Shane’s business, Hīkoi Whenua, will be able to utilise /
control / operate the land without disturbance / charges /
restrictions from the iwi, as the iwi will not need to have
any concerns about their land being vandalised or
spoiled, and will not need to employ anyone to perform
this task. The iwi will be confident that the land will be
looked after and protected (Explained).
TWO reasons why rangatiratanga may contribute to the
success of Hīkoi Whenua could include:
 Having rangatiratanga / the authority over the land has
enabled Hīkoi Whenua to become successful because
the business has access to a location that no other
business does (Explained). This could lead to higher
than normal sales and profits, and to higher revenue
streams than competitors (Fully explained).
 Having rangatiratanga / the authority over the land
means that Hīkoi Whenua will have a unique selling
point (USP) that other trekking businesses will not have
(Explained). Through having this USP, Hīkoi Whenua is
able to offer a product / service that appears different
from that of their competitors, which will have a positive
impact on sales and profit (Fully explained).
 Having rangatiratanga / the authority over the land may
 Identifies TWO factors that
may contribute to the
success of the business.
 Identifies how EACH factor
may contribute to the
success of the business.
(Answers will typically state
relevant examples, business
knowledge, and / or Māori
business concepts.)
 Fully explains TWO reasons
why Shane’s rangatiratanga
status may help to make
Hīkoi Whenua a successful
business.
 Identifies TWO factors that
may contribute to the
success of the business.
NCEA Level 1 Business Studies (90837) 2015 — page 7 of 8
help Hīkoi Whenua to become successful because the
business has not had any restrictions placed on it
regarding usage, and will enjoy either exclusive land
access and use, or use on preferential terms
(Explained). This will help to reduce costs and
maximise sales, resulting in higher profits than
competitors could achieve (Fully explained).
(b)
Success measurement: Profitability
 One contributing factor is that the business provides
excellent customer service, including helpful customer
advice and after sales service (Described). This will
result in satisfied customers, who will bring in new
customers through word of mouth, resulting in
increased sales (Explained). Over a period of time, this
increase in sales will lead to an increase in profits (Fully
explained).
 Another contributing factor is that the business has
formed excellent relationships with its suppliers
(Identified). This means that the business is given
discounts for prompt payment and for ordering in bulk,
which leads to a decrease in expenses (Explained).
Reduced expenses will lead to increased profits (Fully
explained).
Success measurement: Growth
 One contributing factor is that the owner of the business
has strong marketing skills (Identified), and the
business is able to take advantage of changes in
demand, and is therefore able to adapt its products to
customers’ needs (Explained). This will result in an
increase in customers, and therefore market share, if
competitors do not respond as swiftly (Fully explained).
 Another contributing factor is the introduction of
customer service training for all staff (Identified). This
enables staff to give helpful customer advice and after
sales service to the customers, resulting in satisfied
customers, who will then bring in new customers
NCEA Level 1 Business Studies (90837) 2015 — page 8 of 8
through word of mouth, resulting in increased sales
(Explained). Over a period of time, profit will increase
and the business will be able to expand (Fully
explained).
 Other success measures: sustainability, survival.
N1
Very little
Achievement
evidence.
N2
Some Achievement
evidence.
A3
A4
Most Achievement
evidence.
Nearly all
Achievement
evidence.
M5
Some Merit
evidence.
M6
Most Merit evidence.
E7
E8
Excellence
evidence. One part
may be weaker.
All points covered.
N0/ = No response; no relevant evidence.
Cut Scores
Not Achieved
Achievement
Achievement with Merit
Achievement with Excellence
0–6
7 – 12
13 – 18
19 – 24